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Rockwell Collins, Inc. (COL) Stock Gets 18% Premium in United Tech’s Bid

Deal seen likely to reshape aerospace parts markets

   

Rockwell Collins, Inc. (NYSE:COL) will be acquired by United Technologies Corporation (NYSE:UTX) in a $23 billion cash and stock deal. The transaction prices COL stock at $140 a share, an 18% premium to where it traded last month when the deal initially made news.

Rockwell Collins, Inc. (COL) Stock Gets 18% Premium in United Tech's Bid
Source: Flickr

In what will be the biggest aerospace deal in history, industry watchers expect it to reshape the market for aerospace parts, according to a report in the Wall Street Journal.

It’s no secret that the avionics and information technology services provider has been considering selling itself, and the company is roughly valued at $19 billion. The move would help Rockwell Collins’ CEO Greg Hayes return $22 billion to shareholders in dividends and buybacks.

COL stock was up 2.6% at 4:05 a.m. Eastern, in pre-market trading. The shares had gained 9.8% through Sept. 1 since reports of the deal first surfaced in early August.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/united-technologies-corporation-utx-bids-23b/.

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